GM Daewoo to Buy Daewoo Powertrain From Daewoo Telecom and Woori Bank

SEOUL October 12, 2003; Dow Jones reported that GM Daewoo Auto & Technology Co., an affiliate of General Motors Corp. of the U.S., said Monday it has signed a preliminary agreement to acquire Daewoo Powertrain for $44 million from Daewoo Telecom.

Daewoo Powertrain produces automatic transmissions for passenger cars and is 100% owned by Daewoo Telecom.

GM Daewoo said it signed a preliminary agreement with Daewoo Telecom and Woori Bank, which is in charge of Daewoo Telecom's restructuring efforts.

The companies expect to finalize the agreement and transfer assets to GM Daewoo before the end of this year.

"This deal successfully completes the objectives of the work-out procedure for Daewoo Telecom...it will also be a turning point for Daewoo Powertrain putting it in a position to grow profitably," said Daewoo Telecom Chief Executive Kim Yong Koo in a statement.

Daewoo Powertrain employs 320 people and has an annual capacity of 400,000 automatic transmissions.

A GM Daewoo spokesman said all Daewoo Powertrain employees will be transferred to GM Daewoo.

GM Daewoo was created last October after GM and its partner firms bought a controlling stake in the car manufacturing operations of Daewoo Motor Co.